• Prime Minister Shri Narendra Modi inaugurated ‘Maritime India Summit 2021’.

    • The Sagar-Manthan: Mercantile  Marine  Domain Awareness Centre has also been launched. It is an information system for enhancing maritime  safety, search and rescue capabilities, security and marine environment protection.

    • The event comprises of a 3-day Summit and Exhibition.

    • The event will be attended by various stakeholders in the maritime sector including senior and eminent policy planners, domestic and international investors, CEOs of Indian and global maritime companies, industry experts, thought leaders, technology providers, bankers and insurers, representatives of major ports and shipping lines from across the world.

    • The Virtual Maritime India Summit will host forums to foster interaction between stakeholders through B2B and G2B meetings; special sessions on investment opportunities in India’s maritime sector including:

        ◦ ship building, ship repair, ship recycling, dredger/ barge manufacturing

        ◦ setting up of new ports and capacity augmentation of existing ports

        ◦ port-based industrial development, port-based Smart cities

        ◦ development of maritime cluster, hinterland connectivity projects

        ◦ multi-modal logistics hubs

        ◦ development of inland waterways for cargo and passenger transportation

        ◦ coastal shipping, passenger ferry services, lighthouse and cruise tourism

        ◦ island development and aquatic resources

        ◦ renewable energy projects in ports and other services (Financing, Legal, Design etc.).

    • The conference will project vast investment opportunities in each of the Indian maritime states and union territories.

Destination India

    1. Amongst the fastest growing economics in the world: IMF projects growth of 11.5% for India in 2021.

    2. Largest youth population in the world

        ◦ The population of India is expected to rise from 121.1 Crore to 152.2 Crore during 2011-36 - an increase of 25.7% in twenty-five years.

        ◦ India has its largest ever adolescent and youth population. It will continue to have one of the youngest populations in the world till 2030.

        ◦ India has the third-largest group of scientists and technicians in the world.

    3. Transforming of infrastructure landscape

        ◦ National Infrastructure Pipeline (NIP), a first-of-its-kind initiative to provide world-class infrastructure across the country has been launched.

        ◦ The NIP will attract investments into infrastructure and will be crucial for attaining the target of becoming a USD 5 Tn economy by FY 2025.

        ◦ Nearly 7,000 projects across different sectors costing above INR 100 Crore per project and totalling INR 111 Lakh Crore have been identified.

        ◦ Sectors such as Energy (24%), Roads (18%), Urban (17%) and Railways (12%) amount to around 71% of the projected infrastructure investments in India.

        ◦ By 2030, it is estimated that around 42% of India’s population would be urbanised from 31% in 2011.

    4. Rising global competitiveness

        ◦ India jumps 79 positions from #142 (2014) to #63 (2019) in World Bank's ‘Ease of Doing Business Ranking 2020'.

        ◦ India ranks #68 on the Global Competitiveness Index FY 2018-19.

        ◦ 95% of 1.2 Bn Indians are covered under Aadhar Scheme, one of the world’s largest social security program.

        ◦ Pradhan Mantri Jan Dhan Yojana, a formalization of savings scheme under which 312 Mn bank accounts have been opened with savings amounting to USD 11.6 Bn.

        ◦ Goods and Services Tax (GST), the biggest tax reforms since independence, paves way for a common national market by integrating various indirect taxes.

    5. Improving at innovation

        ◦ India jumps 4 positions and ranks #48 in the Global Innovation Index 2020 rankings.

        ◦ India ranks #1 in the Central & Southern Asia Region India ranks #3 amongst the Lower Middle-Income Economy Group.

    6. Rising economic influence

        ◦ Centre of global maritime trade to move from the Pacific to the Indian Ocean Region. India and China will be the largest manufacturing hubs of the world by 2030.

        ◦ Connectivity to Central Asia and Europe via the International North-South Transport Corridor (INSTC).

        ◦ In the next five years, India to have greater economic influence across the Asia-Pacific Region.

    7. Supporting government structure

        ◦ Largest democracy, federal in structure with unitary features

        ◦ Robust legal and political systems ensuring long-term political stability and policy continuity

        ◦ Reserve Bank of India (RBI) which plays a critical role in maintaining the economic stability in India.

        ◦ Securities Exchange Board of India (SEBI) which is the regulator of Indian markets and ensures the rights and safety of investors.

        ◦ The Competition Commission of India (CCI) enforces the Competition Act across India and is a market regulator across all sectors with focus on anti-competitive behaviour of enterprises that may distort competition.

    8. World Class industrial corridors

        ◦ Development of various Industrial Corridor Projects 

        ◦ This will create employment opportunities and economic growth leading to overall socio-economic development.

    9. Ease of doing business

Shipping Sector Overview

    • India has 12 Major Ports and 205 notified Non-Major Ports along its 7,500 Km long coastline and vast network of navigable waterways of 5000Km.

    • Globally, India ranks #2 in ship recycling and #21 in ship building. India is ranked amongst the top 5 countries supplying trained manpower, with 17% growth in seafarers in the last 3 years.

    • The total traffic handled at Indian Ports has risen steadily from 885 MTPA in FY 2010-11 to 1,307 MTPA in FY 2019-20. India’s Major Ports have witnessed ~4% CAGR growth over the last 5 years and handled ~54% of the country’s total cargo in FY 2019-20.

    • Two Indian Ports, JNPT (#33) and Mundra (#37) have the distinction of featuring in the list of top 40 global container ports. India augmented its capacity by over 65% across all Major Ports in the last 5 years.

    • Inland Water Transport: India has increased the modal share of cargo from 0.5% to 2% and has witnessed 19% year-on-year growth in car-go volumes over the last 5 years

    • India is one of the world's top 5 ship recycling countries and holds 30% share in the global ship recycling market.

    • India has become the fourth country in the world to have its independent Regional Navigation Satellite System (IRNSS)

    • The Government of India allows 100% FDI under the automatic route for port development projects

    • The cumulative FDI equity inflow in the Port industry is USD 1,637.30 Bn during the period April 2000 to September 2020.

Sagarmala Programme

    • The Government launched the ambitious Sagarmala Programme in March 2017, with the vision of port-led development and growth of logistics-intensive industries.

    • Under Sagarmala Programme, USD 123 Bn would be invested across 415 projects across the following identified components:

        ◦ Port Modernization and New Port Development

        ◦ Port Connectivity Enhancement

        ◦ Port-Linked Industrialization

        ◦ Coastal Community Development

Growth Enablers

    1. India's role in the global maritime sector

        a. India is strategically located on the world’s shipping routes with a coastline of approximately 7,500 Km.

        b. India is ranked amongst the top 5 countries supplying trained manpower, with 17% growth in seafarers in the last 3 years.

        c. Of the total cargo handled at Indian ports, over 54% is handled at the country’s 12 public sector Indian ports.

        d. India ranks #2 in ship recycling and #21 in ship building globally.

        e. Indian cruise market has the potential to grow by 8 times over the next decade, driven by rising demand and disposable incomes.

    2. India's maritime infrastructure

        a. The Shipping sector plays a crucial role in its overall trade and growth, with 95% of the country’s trade volume and 65% of the trade value being undertaken through maritime transport.

        b. India has over 5,000 Km of navigable inland waterways under development and has increased the modal share of cargo from 0.5% to 2% and has witnessed 19% year-on-year growth in car-go volumes over the last 5 years.

        c. 34 PPP projects with an investment of USD 3.05 Bn involving capacity addition of 300 Million Tonnes Per Annum (MTPA) are under operations.

        d. 13 PPP projects with an investment of USD 978.3 Mn involving capacity addition of 140 MTPA are under implementation.

        e. There are 20 captive projects with an investment of USD 713.8 Mn involving capacity addition of 142.45 MTPA under operation and 7 captive projects with an investment of USD 930.5 Mn involving capacity addition of 55 MTPA is under implementation.

        f. Eight times increase in capacity at major ports to 1,535 MTPA in FY 2019-20 from 172.59 MTPA in FY 1993-94.

        g. In FY 2020, major ports in India handled 704.82 Million Tonnes (MT) of cargo traffic, implying a CAGR of 2.74% during FY 2016-20

        h. As per Union Budget FY 2020–21, the total allocation for the Ministry of Ports, Shipping 7 Waterways stands at INR 1,800 Crore (USD 257.22 Mn)

        i. Trade will boost demand for containers. In FY 20, container traffic in India (for major ports) reached 9.98 TEUs, implying a growth of 1.12% YoY

        j. Infrastructural development will increase demand for iron and steel. In FY20, iron ore traffic at major ports reached 54.99 MT

        k. 118 maritime projects requiring USD 7.7 Bn investment have been approved in the last four years.

    3. Port Infrastructure

        a. India has 12 major and 200 non-major/ intermediate ports (under state government administration).

        b. Jawaharlal Nehru Port Trust is the largest major port in India, while Mundra is the largest private port.

        c. Out of India’s 205 non-major ports, 44 are functional and strategically located on the world’s shipping routes

        d. India has affected several improvements such as construction of new terminals, development of a regulatory environment etc., which has resulted in a rapid ~35%+ growth in the cruise market in the last three years.

    4. Technological advancements

        a. As per Maritime India Vision 2030, 50+ digital initiatives will be implemented to transform major ports of the country into ‘Smart Ports’.

        b. Smart ports will be data-driven, use automated devices, Internet of Things (IoT), and leverage analytical technologies for safer and more efficient management of resources.

        c. Enhancing logistics efficiency through technology and innovation, key interventions identified to enhance efficiency include creation of a National Logistics Portal (Marine), functional processes digitalization across maritime stakeholders, Digital-led smart ports, and system-driven port performance monitoring.

        d. By 2030, Major Ports are envisaged to be multi-modal, connected hubs, playing a major role in India’s growth.

Maritime India Vision 2030

    • With the objective of propelling India to the forefront of the Global Maritime Sector, Ministry of Ports, Shipping and Waterways has formulated Maritime India Vision 2030 (MIV 2030), a blueprint to ensure coordinated and accelerated growth of India’s maritime sector in the next decade.

    • Maritime India Vision 2030 envisions an overall investment of INR 3,00,000 – 3,50,000 Crore across ports, shipping, and in-land waterways categories. 

    • This vision roadmap is estimated to help unlock INR 20,000+ Crore worth of potential annual revenue for Indian Ports. Further, it is expected to create an additional ~20,00,000+ jobs (direct and non-direct) in the Indian maritime sector.

    • Maritime India Vision 2030 suggests development of a Maritime Development Fund (MDF) to enable raising long term funds in the domestic and international markets.

    • MDF would then on-lend such funds to the maritime sector at competitive rates. Funds are proposed to be utilized for financing:

        ◦ Financing support for fleet acquisition by shipping companies

        ◦ Inland Waterways operations & vessel financing

        ◦ Setting up and modernizing shipyards

        ◦ Setting up ship repair facilities

        ◦ Setting up ship building ancillary parks and design hubs

        ◦ Promoting cruise tourism

        ◦ Port led development

        ◦ Mechanization and capacity expansion of existing ports through PPP

        ◦ Setting up new ports and jetties through PPP.

(The author is a trainer for Civil Services aspirants. The views expressed here are personal.)